Customer experience wasn’t always the trendy topic it is today. Brands typically prioritized competitive pricing and product development over the actual experience of their customers.

But the battle for sales, brand loyalty, and customer retention in 2021 and beyond will be won by businesses that take customer experience seriously and execute strategies that audiences connect with.

So why is customer experience significant all of a sudden?

Because consumers expect more from brands than ever before. With millions of brands vying for your attention, consumers are beginning to separate themselves from brands that put their experiences on the back burner.

Your brand’s customer experience can make customers feel valued, engaged, and eager to spend. But if you can’t get it right, you’ll fall behind competitively to other brands. Let’s review why customer experience matters for your brand now and in the future.

Quick overview of Customer Experience

Customer experience (CX) is defined as the thoughts and feelings consumers have and the actions they take during interactions with your brand. This experience starts when people first hear about your company, continues throughout their customer journey, and extends past their purchase.

How customers perceive your brand and their experience can lead them to purchase and repeat purchase or stop doing business with your company altogether. In fact, 73% of people admit customer experience is an essential factor in their purchasing decisions. Yet only 49% of consumers say companies provide a good customer experience.

When each touchpoint shows customers that you care about their time, money, and overall experience, your brand will be more efficient at driving loyalty and inspiring customers to share their positive experiences with others.

How CX differs from customer service

Customer experience encompasses someone’s entire journey with your brand, whereas customer service usually reflects a single touchpoint.

CX ripples across all areas of your business – from brand awareness, website design, shipping, email newsletters, social media, and more. Customer experience includes customer service. Support is just one aspect of your customer’s overall experience with your brand, though it matters a great deal.

Your business can also have fantastic customer service and a poor customer experience.

For example, let’s say your spa business is great at answering phone calls and emails for customer support questions. This is great service. However, at the same time, your customer experience can be miserable. Your website is confusing to navigate. Your online scheduling experience is glitchy and non-intuitive. Your POS system is outdated. Your facialists are routinely late for their appointments.

Why Customer Experience matters

SuperOffice, a cloud CRM platform, recently surveyed 1,920 business professionals about their top priorities in the next five years. More than 45% answered “customer experience,” beating out product (33.6%) and pricing (20.5%).

What’s causing this shift toward better customer experiences? Why are customers pickier now than ever before? Let’s review:

Customers today are more tech-savvy and well-researched before making buying decisions. It’s become the norm to shop around before pulling the trigger. While multiple brands may have similar products and price points, only one will speak to them to earn their trust and the sale.

Buyers want to know who’s behind the products, what the company stands for, and that it sees, hears, and appreciates its customers.

82% of US customers want and seek out brands offering a human touch (PwC). They’re looking for brands to foster authentic connections and use technology to help personalize a seamless, enjoyable experience. Companies should understand them and their needs at every touchpoint. And doing so will actually benefit your bottom line.

Customers will pay more for a better experience

Stats show that 42% of customers will pay more for a friendly, more welcoming customer experience (PwC). And the more expensive the product or service, the more customers are willing to pay for better CX.

Consumers value a great customer experience because it generally means they’ll have to deal with less friction and frustration, score more convenience, and, ultimately, have less buyer’s remorse.

You’ll boost customer satisfaction and reduce churn

Happy customers tend to stick around, especially after they’ve done the legwork to research your company and compare your price, product, and CX. They’ll be less likely to churn – canceling their subscriptions and ending their contracts – if you continue to provide the CX that attracted them in the first place.

According to Gartner, customer experience drives over 60% of brand loyalty, more than price and product combined. Your sales team will thank you for creating loyal customers, as they know how deflating it can be to see their accounts walk out the door for a competitive brand.

Related: Your sales team has just as much of a responsibility for creating a great customer experience – and this is true even after the sale. This is why they should practice relationship selling rather than looking at each account as just another dollar sign.

Word of mouth outreach increases brand awareness

Pleased, loyal customers will become advocates for your brand, spreading positive word-of-mouth and increasing brand awareness. This organic marketing can be more effective and trustworthy than traditional advertising methods.